Correlation Between Diös Fastigheter and OPEN HOUSE

Can any of the company-specific risk be diversified away by investing in both Diös Fastigheter and OPEN HOUSE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Diös Fastigheter and OPEN HOUSE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dis Fastigheter AB and OPEN HOUSE GROUP, you can compare the effects of market volatilities on Diös Fastigheter and OPEN HOUSE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Diös Fastigheter with a short position of OPEN HOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diös Fastigheter and OPEN HOUSE.

Diversification Opportunities for Diös Fastigheter and OPEN HOUSE

-0.62

Correlation Coefficient

Diös Fastigheter  OPEN HOUSE

Excellent diversification

The 3 months correlation between Diös and OPEN is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dis Fastigheter AB and OPEN HOUSE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPEN HOUSE GROUP and Diös Fastigheter is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dis Fastigheter AB are associated (or correlated) with OPEN HOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPEN HOUSE GROUP has no effect on the direction of Diös Fastigheter i.e., Diös Fastigheter and OPEN HOUSE go up and down completely randomly.

Pair Corralation between Diös Fastigheter and OPEN HOUSE

Assuming the 90 days horizon Dis Fastigheter AB is expected to under-perform the OPEN HOUSE. In addition to that, Diös Fastigheter is 1.34 times more volatile than OPEN HOUSE GROUP. It trades about -0.07 of its total potential returns per unit of risk. OPEN HOUSE GROUP is currently generating about 0.12 per unit of volatility. If you would invest  3,260  in OPEN HOUSE GROUP on December 24, 2024 and sell it today you would earn a total of  340.00  from holding OPEN HOUSE GROUP or generate 10.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Dis Fastigheter AB  vs.  OPEN HOUSE GROUP

Dis Fastigheter AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dis Fastigheter AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

OPEN HOUSE GROUP

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OPEN HOUSE GROUP are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, OPEN HOUSE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Diös Fastigheter and OPEN HOUSE

The main advantage of trading using opposite Diös Fastigheter and OPEN HOUSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diös Fastigheter position performs unexpectedly, OPEN HOUSE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OPEN HOUSE will offset losses from the drop in OPEN HOUSE's long position.

The idea behind Dis Fastigheter AB and OPEN HOUSE GROUP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.